Ampere Electric has increased the prices of its electric scooters by up to Rs 39,000. The price hike has been attributed to the reduction in FAME 2 subsidies by the government. The FAME 2 scheme, launched in 2019, provided subsidies of up to 40% of the ex-showroom price of electric vehicles.
|Model||Previous Price ( Ex-Showroom)||New Price ( Ex-Showroom)||Increase|
|Primus||Rs. 1,57,526||Rs.1,96,526||Rs 39,000|
|Zeal EX||Rs. 95,900||Rs.1,16,800||Rs 20,900|
|Magnus Ex||Rs. 1,04,776||Rs.1,25,776||Rs 21,000|
However, the government has recently reduced the subsidy to 15%. This has led to an increase in the cost of electric vehicles, which has forced companies like Ampere to increase their prices.
The price hike is likely to have a negative impact on the sales of electric scooters in the short term. However, the long-term trend is still positive, as the government is committed to promoting the adoption of electric vehicles.
The government has set a target of having 30% of all new vehicles sold in India by 2030 to be electric. This will require a significant increase in charging stations and other infrastructure, but it is an achievable goal.
Few reasons why prices for electric two-wheelers in India have been hiked.
- Reduction in FAME II subsidy: The government of India has reduced the subsidy given to electric two-wheelers under the FAME II scheme, effective June 1, 2023. This has led to an increase in the cost of production for electric two-wheeler manufacturers, which they have passed on to consumers in the form of higher prices.
- Increasing demand: The demand for electric two-wheelers in India has proliferated recently. This has put upward pressure on prices as manufacturers struggle to keep up with demand.
- Rising raw material costs: The cost of raw materials, such as lithium-ion batteries, has grown in recent months. This has also contributed to the increase in prices for electric two-wheelers.
It is important to note that not all electric two-wheeler manufacturers have hiked prices. Some companies have absorbed the cost of the subsidy reduction and are keeping prices unchanged. However, electric two-wheeler prices will likely continue to rise shortly as the demand for these vehicles grows.
Here are some of the electric two-wheeler manufacturers that have hiked prices:
- Ola Electric: Ola Electric has increased the prices of its S1 and S1 Pro scooters by ₹15,000 each.
- Ather Energy: Ather Energy has increased the prices of its 450X and 450 Plus scooters by ₹10,000 each.
- TVS iQube: TVS Motor has increased the prices of its iQube scooter by ₹17,000 – ₹22,000, depending on the variant.
It is essential to note these are just a few examples, and prices may vary depending on the manufacturer and model.
In the meantime, consumers looking to buy an electric scooter should be aware of the price hike and factor it into their decision-making process. Several affordable electric scooters are still available, and the government’s FAME 2 scheme still provides a significant subsidy. However, consumers should be prepared to pay more for an electric scooter in the short term.